with a clear

HO. Coreign Office Note "Rawloon Walled City

112

fel 112 from Nanking to FO. Sel 113 from Nanking to F.O. 113. Lee 116 from Nanking & FO.

Mr. Seel to

understandini's

That

J counse the park would

4-2 +8.

72.2-48.

At Mr. Dening's request, we discussed at the Foreign Office with him and Mr. Scarlett this morning the Foreign Office note at (110).

Mr. Dening explained that Mr. Bevin had now interested himself personally in this matter and that Mr. Bevin's view was that we must reach a solution of this question with the Chinese as soon as possible. To that end we must be conciliatory and ready to act in accordance with the 1948 spirit and outlook where that conflicted with rights acquired or enjoyed in the past.

As Mr. Bevin has called for a discussion with Sir Orme Sargent and Mr. Dening this after- noon, the latter sent him a copy of the Foreign Office note at (110) so that Mr. Bevin would be aware of the issues involved.

Our discussion with Mr. Dening and Mr. Scarlett turned mainly on the recommendation in the Foreign Office note that we should concede the Chinese claim to jurisdiction within the Walled City, on the understanding that the Chinese would not exercise it. Mr. Dening explained that their note was written before the receipt of the telegram from Hong Kong at (109), in which the Governor suggests that both sides should waive their claims to jurisdiction. After some discussion Mr. Dening said that he would be prepared to agree to put to the Chinese the Governor's proposal for a mutual waiver of claims to jurisdiction, (instead of the Foreign Office proposal to concede the Chinese claim to jurisdiction, on the under- standing that they will not exercise it,

it, in conjunction with detailed arrangements for turning the area into a park.

The Governor, in his telegram at (109) Contemplated having to agree to make the site

he advertend Available to the Chinese for a Consulate-General by Hong Kay.

instead of turning it into a park. The proposal to which Mr. Dening is prepared to agree should, therefore, be acceptable to the Governor of Hong Kong and Mr. Dening was informed that we should be prepared to recommend it for approval here.

Mr. Dening said that he in his turn would put forward the above proposal, instead of the original Foreign Office recommendation, at his meeting with the Secretary of State for Foreign Affairs and Sir Orme Sargent this afternoon. Mr. Dening added that he understood that Mr. Bevin proposed to take an early opportunity to talk to Mr. Creech Jones about this matter.

If agreed to here, the proposal would of .course have to be put to the Governor of Hong Kong

and the Ambassador at Nanking for their views, before it was made to the Chinese Government, and draft telegrams are being prepared for this purpose in anticipation of Ministerial agreement to the proposal.

In this connection I should perhaps draw attention to the Nanking telegram No.116, copy

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